Ideally you also took photos before they moved in to avoid them claiming the damage was pre-existing. 

But you must have a pre existing relationship with them. 506b also has onerous reporting requirements like a yearly financial audit that will run you $10-$20k, so if it’s less than $1M a 506b may not be way to goAnother is a reg a+ offering but that costs $100k+ to setup and requires registering and review by sec.If you want passive investors who are not accredited there are not many options.

I"m seeking to rezone the lots as they are pre-existing, prior to the first zoning codes, which later came in and only granted duplex zoning, so these are legal, non-conforming but can't be converted to separate up/down "condo" sales as lenders won't loan if a structure can't be rebuilt after a catastrophic loss unless its zoned correctly as their collateral is compromised and that is the case in the county where these are located. 

:Typically you'll need more money, more time to buy land and build vs, versus buying preexisting construction in town.You may need cash for the lot or maybe 50% down. 

But on top of that, most people like pre-existing trees, boulders and water.

506(b) is quite common if you have a preexisting relationship with investors and do not need or want to publicly advertise. $150-250k is a pretty small raise for a syndication, though.

I did not expect a diagnostic fees because contract starts today.They are charging me $250 just for diagnosis:-( citing it's a pre-existing condition.

You may end up in court, if there are pre-existing pictures you’ll probably be somewhere between repairs and replacements, I would GUESS repair costs.

Pre-existing shed on the premises? 

If it turns out that it will be more affordable to purchase a preexisting home (again, financing in place), then it may eliminate the need for the rental altogether, simply by moving and then renting out your current home.